UPDATE 7-Oil up on dollar dive as U.S. payrolls slip

                                
 * Dollar weakness after U.S. payrolls data supports oil
                                
 * USDA corn forecast boosts ethanol, RBOB futures
                                
 * Strike at French oil port supports oil prices
                                
 * Coming up: API oil inventory data, 4:30 p.m. EDT Tues
 (Updates with settlement prices, additional detail)
                                
 By Robert Gibbons
                                
 NEW YORK, Oct 8 (Reuters) - Oil prices rose on Friday,
posting a third straight weekly rise as investors bet that a
weaker-than-expected U.S. jobs report bolstered the case for
more monetary easing by the Federal Reserve that would keep
pressure on the dollar.
                                
 The oil futures complex got further support as a strike at
France's top oil port, now in its 12th day threatened to cut
European oil products output. Also, a surprisingly sharp cut in
the U.S. government's corn crop forecast sent cash ethanol
prices sharply higher. [ID:nLDE6971NT]
                                
 U.S. nonfarm payrolls fell 95,000 in September, the U.S.
Labor Department said. [ID:nN08205203] Private sector jobs rose
64,000, less than the consensus forecast, after a 93,000 rise
in August.
                                
 U.S. crude for November <CLc1> delivery rose 99 cents, or
1.21 percent, to settle at $82.66 a barrel, having traded from
$80.30 to $83.13. For the week, prices rose $1.08, or 1.32
percent.
                                
 ICE Brent November crude <LCOc1> rose 60 cents, or 0.72
percent, to settle at $84.03 a barrel. Brent was up 28 cents
for the week, a seventh straight weekly rise.
                                
 "The negative unemployment report makes quantitative easing
after the election a virtual certainty. This expectation has
already affected the dollar's value and pushed energy prices
higher," said John Kilduff of Again Capital LLC in New York.
                                
 "Another leg lower for the dollar is likely thereby
creating more commodity inflation. It's not a demand issue with
the employment backdrop; it's financial physics at work."
                                
 The dollar slid to a 15-year low against the Japanese yen
after the payrolls report reinforced the expectation of further
asset purchases from the Fed.[USD/]
                                
 The dollar also fell sharply against the euro on the jobs
data, but it recovered some of those losses after Eurogroup
Chairman Jean-Claude Juncker said he was not happy with the
euro's move to $1.4000, a level surpassed Thursday.
                                
 The dollar's weakness this week helped oil prices rally,
reaching $84.43 intraday on Thursday, a five-month high, before
the dollar bounced and crude ended the day lower as investors
booked profits ahead of Friday's payrolls report.
                                
 A weak dollar boosts dollar-denominated oil my making it
cheaper for buyers holding other currencies, lowering the value
of greenbacks paid to producers and attracting investment
looking to shift from cash to commodities.
                                
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  Graphics of oil correlations to the dollar and payrolls:
                                
  http://link.reuters.com/puh67p
                                
  http://link.reuters.com/kyh67p
                                
  http://link.reuters.com/xyh67p
                                
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 U.S. equities also rallied on expectations the Fed will
take more action to support economic recovery. The Dow Jones
Industrials moved above 11,000 for the first time since early
May. [.N]
                                
 Four oil refineries in southern France face closure this
weekend, the country's oil lobby said on Friday, after workers
at a key oil port voted to continue a strike for a 12th day.
[ID:nLDE6970K4]
                                
 Enbridge Inc. <ENB.TO> said it shut its 670,000
barrel-per-day Line 6A pipeline bringing crude from Canada to
the United States after discovering a problem during
maintenance early Friday. [ID:nWEN0972]
                                
 The pipeline snag comes three weeks after Line 6A was
restarted after being shut for more than a week after a leak.
                                
 Earlier this week, the U.S. Energy Information
Administration data showed U.S. crude stocks rose by a
greater-than-expected 3.09 barrels last week, though refined
fuel stocks fell. [EIA/S]
                                
 Both crude and refined oil stocks remained above year-ago
levels, according to the EIA.
                                
 The Organization of the Petroleum Exporting Countries meets
in Vienna next week to consider production and market share
policy with crude prices since May hemmed between the $64.24
intraday low on May 20, the weakest price since July 30, 2009,
and the 2010 peak of $87.15 reached on May 3.
 (Additional reporting by Gene Ramos in New York, Emma Farge in
London and Alejandro Barbajosa in Singapore; Editing by David
Gregorio)